In this publication, we identify the key energy policy and regulatory developments from May – September 2024. This tool is intended as a snapshot for developers, investors, banks and other institutions working in – and supporting – the energy sector in Ireland.

2 May 2024 – SEM Committee publishes Decision on Capacity Renumeration Mechanism Early Delivery Incentives

The SEM Committee (SEMC) published the ‘Capacity Remuneration Mechanism – Early Incentives Paper’ decision paper on 2 May 2024 (SEM-24-037). This decision paper sets out incentives for the early delivery of successful projects in the capacity market. At a high-level:

Multi-year “New Capacity” and incremental multi-year capacity will receive payments for early delivery at the same price as its awarded capacity in the 2028/29 T-4 auction.
The first “early delivery incentive” will apply in the T-4 2028-29 auction and all auctions until further notices (including T-1).
Early delivery payments will commence no more than one year before the start of the capacity delivery year for the auction in question.
Any capacity being paid for early delivery would also be subject to “Reliability Option Difference Payments” and “Stop-Loss” limits from the date on which payments start.
For incremental multi-year capacity, only the new position would receive payments (i.e. not any “Existing Capacity”).
Subject to certain exceptions, it is anticipated “Substantial Completion” will need to be achieved in order for payments to be received.

View the publication.

2 May 2024 – SEM Committee publishes Decision on Capacity Renumeration Mechanism Intermediate Length Contracts

SEMC published the ‘Capacity Renumeration Mechanism – Intermediate Length Contracts’ decision paper on 2 May 2024 (SEM-24-035). SEMC has decided to introduce these intermediate contracts for the 2028/29 T-4 auction, taking place in November 2024, and to all future auctions until further notice. SEMC intends to bring forward a CMC modification proposal and associated consultation as soon as possible. View the publication.

2 May 2024 – Government establishes a new Just Transition Commission

The Government announced the establishment of a new “Just Transition Commission” on 2 May 2024, which will provide advice to the Government as to how Ireland can achieve a “just transition” in the context of achieving its national climate objectives. The Minister for the Environment, Climate and Communications (the Minister) also published the Terms of Reference for the new Just Transition Commission. View the publication.

3 May 2024 – DECC opens Consultation on ORESS 2.1 Auction Design

DECC published a consultation in relation to the proposed terms and conditions for the next wave of offshore wind projects in Ireland on 3 May 2024. The proposed government support is structured as a two-way ‘Contract for Difference’ similar to previous renewable energy support schemes in Ireland.

The submissions closed on 7 June 2024 and the auction is scheduled for Q4 2024. View the publication.

3 May 2024 – DECC publishes Consultation on the South Coast Designated Maritime Area Plan (SC-DMAP) for Offshore Renewable Energy

DECC published a consultation in relation to the proposed South Coast Designated Maritime Area Plan (SC-DMAP) for Offshore Renewable Energy, which is to be the first maritime spatial plan for offshore renewable energy development in the state, on 3 May 2024. The SC-DMAP was accompanied by associated environmental assessments – a Strategic Environmental Assessment Environmental Report and Natura Impact Statement.

The submissions in respect of the initial consultation closed on 14 June 2024. View the publication.

Following this, the Minister determined that further public consultation was appropriate. The submissions in respect of this aspect of the SC-DMAP was closed on 30 August 2024. View the publication.

14 May 2024 – DECC launches Future Framework for Offshore Renewable Energy

DECC published the ‘Future Framework for Offshore Renewable Energy’ on 14 May 2023, which outlines roadmap for Ireland achieving its long-term ambitions of 20 GW by 2040 and 37 GW by 2050 (the Framework). The Framework is one of the key actions of the Offshore Wind Energy Programme, which was the system-wide plan developed by the Offshore Wind Delivery Taskforce. It specifically identifies 29 key actions to develop Ireland’s offshore wind resources and explores the potential to export excess energy through increased interconnection. View the publication.

23 May 2024 – Critical Raw Materials Act enters into force

The Critical Raw Materials Act establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending other previous EU regulations, entered into force on 23 May 2024 (the CRMA). The CRMA forms part of the ‘Green Deal Industrial Plan’ and recognises that the EU’s demand for base metals, battery materials, rare earths and other raw materials is increasing as part of the clean energy transition.

The CRMA designates a list of 34 critical raw materials which Member States will be required to support from a development perspective – and a further a further subset of 17 materials (used in strategic technologies) which are to be considered ‘Strategic Raw Materials.’

In respect of the Strategic Raw Materials, the CRMA set the following 2030 benchmarks for the EU:

the extraction capacity should produce at least 10% of the EU’s annual consumption
the processing capacity should produce at least 40% of the EU’s annual consumption
the recycling capacity should produce at least 15% of the EU’s annual consumption for recycling
the EU is not dependent on a single third country for more than 65% of supply of any Strategic Raw Material

View the publication.

28 May 2024 – DECC publishes the National Biomethane Strategy

DECC and the Department of Agriculture, Food and the Marine (DAFM) published Ireland’s National Biomethane Strategy on 28 May 2024. The strategy provides a roadmap for developing a biomethane industry in Ireland and sets out policy and regulatory measures to achieve this.

The strategy is intended to help the Government achieve the delivery of up to 5.7 TWh of indigenously produced biomethane by 2030. It also sets out Government funding which will be available to support biomethane production, specifically the introduction of:

a Renewable Heat Obligation (RHO), an obligation that will be placed on suppliers for fossil fuels uses for heat to ensure a proportion of their energy will be ‘renewable’, and which is expected in Q4 2024.
a capital grant support scheme, which will be targeted at AD plant developers and will be subject to the European Commission and Council assessment and approval. View the publication.

30 May 2024 – DECC publishes Consultation on National Energy and Climate Plan 2021-2030

DECC published a consultation in relation to the National Energy and Climate Plan on 30 May 2024 (NCEP). Ireland updated its draft NECP on 8 December 2023 and the Commission published country-specific recommendations in 2024.This consultation document reflected those updates.

The submissions for the consultation closed on 27 June 2024. View the publication.

14 June 2024 – SEMC publishes Consultation on definitions of Curtailment, Constraint and Energy Balancing

SEMC published a consultation in relation to ‘TSOs proposed definitions of Curtailment, Constraint and Energy Balancing for Non-Synchronous Renewable Generation Units’ on 14 June 2024 (SEM-24-044).

The consultation follows on foot of a request by the SEMC that the transmission system operators, in Republic if Ireland and Northern Ireland, revised the methodology for distinguishing between an event of constraint and curtailment (SEM-13-011).

The submissions in respect of the consultation closed on 26 July 2024. View the publication.

14 June 2024 – DECC establishes Accelerating Renewable Electricity Taskforce

DECC established the Accelerating Renewable Electricity (ARE) Taskforce on 14 July 2024. The establishment of the ARE Taskforce which was a key measure in the Climate Action Plan (CAP) 2023.

The role of the ARE Taskforce is to identify, coordinate, and prioritise the policies required to fast-track and increase deployment of onshore renewable electricity generation and supporting technologies and ensure that barriers to the implementation of those policies are removed or minimised to the greatest extent possible in order to meet 2030 CAP targets. View the publication.

18 June 2024 – CRU publishes Decision on Clean Export Guarantee

The CRU published the ‘Clean Export Guarantee – Enduring Arrangements to Remunerate Customers for Microgeneration Exports’ on 18 June 2024. The decision deals with the enduring arrangements to enable the retail customers to receive compensation for their excess electricity exports and amends the interim measures which have been in operation since 2022. View the publication.

28 June 2024 - EirGrid publishes Consultation on Offshore Wind Connection Agreements

EirGrid published a draft Transmission Connection Agreement and draft Asset Sale and Purchase Agreement for the offshore “Phase 1 Projects” for consultation on 28 June 2024. These documents set out the terms and conditions for connection to the grid and the transfer of the transmission assets from the Phase 1 Projects to EirGrid once built and in operation. Once finalised, these will be first-of-their-type contracts, and a key milestone for the offshore wind sector in Ireland.

The consultation closed on 6 September 2024. View the publication.

4 July 2024 – DECC publishes Electricity Storage Policy Framework

DECC published the first ‘Electricity Storage Policy Framework for Ireland’ on 4 July 2024. The aim of the framework is to clarify the role of electricity storage systems in Ireland’s climate objectives and energy transition.

It sets out the present roles, technical processes, regulatory structures and market positions of electricity storage. It also addresses changes to the Enduring Connection Policy, (Non-) firm connections, the DS3 system services replacement, System Services Future Arrangements (the Designed of Day-Ahead Auctions for System Services), the Schedule and Dispatch programme, market access and revenue stacking. View the publication.

4 July 2024 – DECC publishes the Private Wires Guiding Principles

DECC published the Guiding Principles for Policy Formation in relation to Private Wires, on 4 July 2024. The Guiding Principles follow on from the extensive consultation which took place in late 2023.

The stated aim of the Guiding Principles is to unlock private sector resources to build new electricity infrastructure by expanding the right of private undertakings to connect supply directly with demand. This will represent a shift from the current legal position in Ireland which effectively states that only ESB can own an electricity distribution or transmission system.

Read more in the ALG insight: Private Wires – Guiding Principles for Policy Formulation

View the publication.

9 July 2024 – CRU publishes Decision on Asset Treatment for Merchant Phase 1 Offshore Wind Projects

The CRU published a decision paper setting out the regulatory treatment of offshore transmission assets to be developed by the Phase 1 merchant offshore projects (i.e. the 2 projects which were unsuccessful in the Offshore Renewable Electricity Support Scheme) (CRU202466) on 9 July 2024.

The decision deals with asset transfer valuations (i.e. the valuation process for when the offshore infrastructure is being handed over from the developer to EirGrid), the Operations and Maintenance strategy for the assets, the ‘Guarantee of Availability’ for the assets and compensation for outages, and the firm access treatment and process for allocating firm access units. View the publication.

12 July 2024 – CRU issues Decision on Demand Flexibility Product Procurement

The CRU published a decision paper on ‘ESB Networks DAC Demand Flexibility Product Procurement Recommendation’ on 12 July 2024 (CRU202469).

Through this decision, the CRU approved:

procurement by the DSO of up to 500 MW of medium-term flexibility products in order to manage congestion on the distribution network
an incentives regime for successful tenderers to deliver in line with agreed energisation dates
flexibility contracts to include availability payments structured to a ‘floor and share’ approach and payment indexation
ESB Networks (ESBN) providing indicative delivery schedule to service providers up to a week in advance and endeavouring to provide final schedules in line with Day-Ahead Market (DAM) timeframes
contracts being awarded up to a 15-year basis from the energisation date to termination date

The decision should be read in conjunction with ESBN’s ‘Demand Flexibility Product Proposal’ published on 5 June 2024 (view here). Following the publication of this decision, ESBN is now expected to conduct a separate consultation process that will contain further details in relation to demand flexibility products. View the publication.

25 July 2023 – CRU publishes Decision on National Energy Demand Strategy

The CRU published a decision related to the National Energy Demand Strategy (NEDS) on 25 July 2024 (CRU202467). This decision paper represents Ireland’s first NEDS and sets out the next steps for its development and implementation. The key areas of focus for the NED are smart services, demand flexibility and response, and new demand connections. View the publication.

3 September 2024 – DECC publishes its Annual Report 2023

The DECC published its 2023 Annual Report on 3 September 2024. The report illustrates DECC’s progress towards the achievement of its strategic goals by listing the key achievements in the year. DECC lists amongst its key achievement:

The Climate Action Plan 2024
A new draft of the National Adaptation Framework
National Retrofit Plan
'Energy Security in Ireland to 2030'
National Broadband Plan
The National Hydrogen Strategy
The Mid-Term Review of the National Cyber Security Strategy 2019-2024
First national Clean Air Strategy was published

The Annual Report is a useful round-up for energy market participants to understand policy activity over the last 12 months. View the publication.

3 September 2024 – CRU publishes Offshore Revenue Model for EirGrid

The CRU published a decision paper ‘Offshore Revenue Model – EirGrid’ on 3 September 2024 (CRU202499). The decision sets out the revenue model to be applied to EirGrid in its new role as an Offshore Asset Owner or ‘OAO’. View the publication.

26 September 2024 – CRU publishes Decision on Electricity Connection Policy for Generation and System Services

The CRU published a decision paper on ‘Electricity Connection Policy – Generation and System Services’ on 26 September 2024.

The decision paper sets out a new system and processing criteria for the issuance of export grid connection agreements in Ireland. It also includes details with respect to how repowering applications are to be assessed by system operators.

The first ‘batch’ application process under the new system will take place in September 2025 and thereafter on 31 March and 30 September of each calendar year. It is intended that the decision timelines for issuance of new connection offers will be time bound in order to comply with the EU’s revised Renewable Energy Directive (RED III). View the publication.

27 September 2024 – EirGrid publishes RESS 4 Final Auction Results

EirGrid published the final auction results from its fourth renewable energy support scheme auction (RESS 4) on 9 September 2024.

The average prices were as follows: